External Factors Analysis of ING
ING Groep N.V (NYSE: ING [ADR], Euronext Amsterdam: ING), a Netherlands-headquartered insurance and financial services conglomerate that is in the process of revamping its business strategies in response to changes in the global insurance and financial services industries.
Other People Are Reading
-
Structural Changes in Response to International Credit Crisis
-
ING cut costs through layoffs Its capital requirements adversely impacted by investment exposures in the global credit crisis of 2008, ING received a bailout of over $13 billion from the Dutch government. To repay this loan, ING trimmed operating costs by retrenching 9,500 employees, including CEO Michael Tilmant. Plans are underway to separate the bank from its insurance business by 2013. The restructuring initiatives are expected to eliminate double leverage.
Expansion Strategy in Latin America
-
Impact of global financial crisis which began on Wall Street The growth in pensions and investments in Latin America coupled with recent government regulation in Chile that allowed new participants, federal savings incentives in Columbia, risk-diversification initiatives for pension funds by the Central Bank in Uruguay, and the increase in caps for foreign investments in Mexico, Chile, Peru and Columbia are driving factors for ING's expansion plans in Latin America.
-
Market-Driven Transition to Channel-Specific Products
-
ING finds U.S. real estate trusts lucrative Responding to a global shift in customers' preferences, ING continues to transition its product design toward more channel-specific products.
ING Bullish on U.S. Real Estate Investment Trusts (REITs)
-
ING Real Estate, at a media briefing in April 2009, said it would capitalize on opportunities in the U.S. REITs market, where currently equity is raised at 7 percent to 8 percent discounts on the current price of shares.
Impact of Growth in U.S. Savings Market
-
ING to focus on the retirement savings market The U.S. retirement savings market was estimated at around $17.6 trillion in 2007. Going forward, ING is poised to increase its life and retirement services business and transition from the variable and fixed annuities business to new low-risk rollover products.
-
References
Resources
- Photo Credit Image by Flickr.com, courtesy of César Astudillo Image by Flickr.com, courtesy of Russell James Smith Image by Flickr.com, courtesy of Ernst Moeksis Image by Flickr.com, courtesy of borman818 Image by Flickr.com, courtesy of Pedro Simões
